Key Employment Law Changes in New Zealand Mid-2025
What we do
We can easily adapt to your environment and coach you every step of the way, either on your site, off-site, on the phone or online. You will get a dedicated Consultant to support you with all your people and culture requirements.
Processes & Guidelines
We will tailor your HR processes and policies to perfectly fit your company's unique needs and goals. We conduct a thorough evaluation of your current HR documents, policies & frameworks to identify gaps & improvement areas.
We will then work with you to create bespoke documentation, templates, guides, policies and toolkits that suit your internal culture. We also work with our employment lawyer to ensure your documents comply with current legislation so that your HR department has the fundamentals in place to operate smoothly (without going overboard with paperwork)!
People & Culture Strategy
In the initial phase of our collaboration, we engage with clients through either an employee engagement survey or a client discovery session. This step allows us to gather essential insights into the current HR dynamics and employee perspectives. The outcomes from these discovery phases allows us to craft a bespoke HR strategy that aligns with business goals and prioritise key focus areas.
Our partnership approach ensures the HR strategy we develop addresses both the immediate and long-term needs of the organisation.
Remuneration & benefits
We collaborate with you to refine your remuneration and benefits approach, ensuring they're competitive and reflect your company's mission. By leveraging market insights, we craft strategies that attract and retain talent while maintaining financial viability.
Our role extends to effectively communicating these benefits to your employees, emphasising their value in supporting both professional and personal growth. This approach boosts employee satisfaction and positions your company as a preferred employer.
Talent management and planning
We help you align your talent strategy with your business goals, identifying skill needs and talent gaps to ensure your workforce is future-ready. Our services include succession planning and talent development, aimed at creating a flexible and growth-oriented organisation.
Our proactive talent management approach focuses on nurturing high-potential employees and fostering a culture of continuous improvement. This keeps your team competitive and engaged, preparing your company for both current and future success with enhanced employee retention.
Organisational design
We partner with our clients to identify key talent needs and develop strategies to attract, retain, and develop the right people. Our approach includes performance management, leadership development, and succession planning, all tailored to enhance your team's capabilities and readiness for future challenges.
Our support extends beyond strategy development; we also provide practical tools and guidance for implementing effective talent management practices. This includes creating engaging employee development programs and establishing clear career paths that motivate and retain high performers.
Diversity and Inclusion
We collaborate with you to develop strategies that foster an inclusive workplace, where diversity is not just recognised but celebrated. Through targeted training programs, policy development, and awareness campaigns, we help create an environment that encourages open dialogue, mutual respect, and equal opportunities for all employees.
Our goal is to ensure that every team member feels valued and empowered to contribute their best, driving innovation and enhancing company performance.
Wellbeing initiatives
We assist our clients in crafting and implementing comprehensive wellbeing initiatives that address the physical, mental, and emotional health of their workforce. By conducting thorough needs assessments, we identify specific areas where support is most needed, creating tailored programs that promote a healthy work-life balance, stress management, and overall employee wellness.
Our services range from developing wellness workshops and fitness challenges to offering resources for mental health support. We aim to foster a supportive environment where employees feel valued and have access to the tools they need to maintain their wellbeing.
Recruitment support
Our recruitment support services are designed to streamline the hiring process for our clients, ensuring they attract and retain the best talent for their needs. We offer a comprehensive suite of services, including job description development, writing & placing job adverts, screening candidates, conducting initial interviews, and facilitating the final hiring steps and onboarding.
Second to last example
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Last example
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
What we do
We can easily adapt to your environment and coach you every step of the way, either on your site, off-site, on the phone or online. You will get a dedicated Consultant to support you with all your people and culture requirements.
Processes & Guidelines
We will tailor your HR processes and policies to perfectly fit your company's unique needs and goals. We conduct a thorough evaluation of your current HR documents, policies & frameworks to identify gaps & improvement areas.
We will then work with you to create bespoke documentation, templates, guides, policies and toolkits that suit your internal culture. We also work with our employment lawyer to ensure your documents comply with current legislation so that your HR department has the fundamentals in place to operate smoothly (without going overboard with paperwork)!
People & Culture Strategy
In the initial phase of our collaboration, we engage with clients through either an employee engagement survey or a client discovery session. This step allows us to gather essential insights into the current HR dynamics and employee perspectives. The outcomes from these discovery phases allows us to craft a bespoke HR strategy that aligns with business goals and prioritise key focus areas.
Our partnership approach ensures the HR strategy we develop addresses both the immediate and long-term needs of the organisation.
Remuneration & benefits
We collaborate with you to refine your remuneration and benefits approach, ensuring they're competitive and reflect your company's mission. By leveraging market insights, we craft strategies that attract and retain talent while maintaining financial viability.
Our role extends to effectively communicating these benefits to your employees, emphasising their value in supporting both professional and personal growth. This approach boosts employee satisfaction and positions your company as a preferred employer.
Talent management and planning
We help you align your talent strategy with your business goals, identifying skill needs and talent gaps to ensure your workforce is future-ready. Our services include succession planning and talent development, aimed at creating a flexible and growth-oriented organisation.
Our proactive talent management approach focuses on nurturing high-potential employees and fostering a culture of continuous improvement. This keeps your team competitive and engaged, preparing your company for both current and future success with enhanced employee retention.
Organisational design
We partner with our clients to identify key talent needs and develop strategies to attract, retain, and develop the right people. Our approach includes performance management, leadership development, and succession planning, all tailored to enhance your team's capabilities and readiness for future challenges.
Our support extends beyond strategy development; we also provide practical tools and guidance for implementing effective talent management practices. This includes creating engaging employee development programs and establishing clear career paths that motivate and retain high performers.
Diversity and Inclusion
We collaborate with you to develop strategies that foster an inclusive workplace, where diversity is not just recognised but celebrated. Through targeted training programs, policy development, and awareness campaigns, we help create an environment that encourages open dialogue, mutual respect, and equal opportunities for all employees.
Our goal is to ensure that every team member feels valued and empowered to contribute their best, driving innovation and enhancing company performance.
Wellbeing initiatives
We assist our clients in crafting and implementing comprehensive wellbeing initiatives that address the physical, mental, and emotional health of their workforce. By conducting thorough needs assessments, we identify specific areas where support is most needed, creating tailored programs that promote a healthy work-life balance, stress management, and overall employee wellness.
Our services range from developing wellness workshops and fitness challenges to offering resources for mental health support. We aim to foster a supportive environment where employees feel valued and have access to the tools they need to maintain their wellbeing.
Recruitment support
Our recruitment support services are designed to streamline the hiring process for our clients, ensuring they attract and retain the best talent for their needs. We offer a comprehensive suite of services, including job description development, writing & placing job adverts, screening candidates, conducting initial interviews, and facilitating the final hiring steps and onboarding.
Second to last example
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Last example
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Latest Updates You Must Know
Employment law is constantly evolving in New Zealand, and 2025 has brought some of the most significant changes in recent years. From how contractors are classified to new rules on wage theft and minimum wage increases, these updates reshape both employer responsibilities and employee rights. Understanding these changes is not just about HR compliance, it is about creating fair and sustainable workplaces in a shifting job market.
For employers, failing to keep up could mean legal risks, reputational damage, and unnecessary costs. For employees, knowing your rights ensures you are protected in matters of pay, contracts, and grievances. This article highlights the latest employment law updates, explains what they mean for both sides, and shows why keeping up with these developments is essential for everyone in the workplace.
What is Employment Law in NZ?
Employment law in New Zealand sets the legal framework for how work is structured, managed, and protected. It governs everything from employment agreements and wage entitlements to leave, workplace behaviour, and dispute resolution. At its core, it aims to strike a balance: safeguarding employee rights while giving employers the clarity they need to manage their workforce fairly.
The laws are built to adapt over time. As industries change and new forms of work emerge such as the rise of gig platforms and remote work, legislation must keep pace. This is why updates like the ones in 2025 are so important. They reflect how modern workplaces operate and ensure that both employers and employees have clear rules to follow.
Why is it Important to Understand Employment Law?
For employers, understanding employment law is essential to reduce risk. A single mistake, such as misclassifying a contractor or failing to meet wage obligations, can lead to financial penalties and legal disputes. Beyond compliance, strong knowledge of the law helps businesses maintain healthy workplace relationships and build reputations as fair employers.
For employees, awareness of employment law means knowing your rights and being able to challenge unfair treatment. Whether it is ensuring you are paid correctly, understanding grievance procedures, or knowing when you are entitled to request your contract, the law gives you the tools to protect yourself. For both sides, employment law provides a shared set of expectations that reduce conflict and promote transparency.
Key Changes on Employment Law NZ
New Zealand’s employment law has seen several important reforms in 2025 that affect both employers and employees. These changes touch on everything from how workers are classified to the handling of wage theft, pay equity, and personal grievance claims.
For employers, the updates mean reviewing contracts, payroll systems, and workplace policies to avoid compliance issues. For employees, they highlight stronger protections and greater clarity around rights. Below are the most notable updates you need to be aware of:
Contractor vs Employee Status
A new gateway test has been introduced to determine whether someone is a genuine contractor or an employee. This reform addresses long-standing confusion in the gig economy and casual work sectors. It gives businesses clearer guidance when structuring agreements and helps workers understand the rights they are entitled to.
Employment Relations Amendment Bill 2025
The Employment Relations Amendment Bill 2025 introduces several important reforms:
- Removal of the 30-day rule requiring new employees to start under a collective agreement.
- Introduction of a salary threshold, above which some unjustified dismissal protections no longer apply.
- Refinements to the personal grievance process.
More details on this bill can be found in the government’s official media release.
Wage Theft as a Criminal Offence
Underpayment of workers is now treated as a criminal offence when done intentionally or recklessly. This sends a strong message that employers must take wage obligations seriously, or they risk facing criminal charges.
April 2025 Minimum Wage Increase
The adult minimum wage has risen to 23.50 dollars per hour. Starting-out and training rates have also increased proportionately. For workers, this brings additional financial security. For employers, it adds to payroll considerations.
Pay Equity Claims
Pay equity claims are now subject to tighter rules. The workforce involved must have been at least 70% female for the past decade. A hierarchy of comparators has also been introduced to ensure that claims are assessed consistently across industries.
March 2025 Employment Agreements
Since 30 March 2025, employees will gain the right to request a copy of their employment agreement. Employers must provide this within seven working days of the request. This change promotes transparency and helps avoid disputes about contract terms.
High-Income Exemptions
Employees earning more than 180,000 dollars may be excluded from unjustified dismissal claims unless both sides agree otherwise. A 12-month transition period is expected, giving current employees and employers time to adjust.
Employee Remedies Adjustments
Remedies in personal grievance cases may be reduced or removed if the employee’s own behaviour contributed to the issue. This includes serious misconduct, poor performance, or obstructive conduct.
Partial Strike Deductions
The government plans to reinstate partial pay deductions for employees who participate in partial strikes. This brings employment law back in line with earlier legislation.
Protected Negotiations for Ending Employment
A proposed reform may allow employers to hold protected settlement discussions when ending employment. These discussions would not be able to be used against them in future legal claims.
Holidays Act Reform
The long-awaited rewrite of the Holidays Act has been delayed once again. Following further consultation, the new version is not expected until at least 2026, leaving employers to continue managing the existing system.
Benefits of Employment Law to Employee and Employer
- Protects employees by guaranteeing fair wages, safe conditions, and equal treatment
- Protects employers by providing a clear framework for hiring, managing, and ending employment
- Reduces disputes by offering structured grievance and dismissal processes
- Promotes fairness across industries by applying consistent standards
- Helps businesses avoid penalties by ensuring compliance with government requirements
Get Support on Managing Employee Rights with People & Culture
Employment law updates like these can be complex, and staying compliant requires time, resources, and specialist knowledge. At People & Culture, we help businesses across New Zealand navigate these changes with confidence. Our outsourced HR services ensure your agreements, payroll systems, and workplace practices are aligned with the latest legal requirements while supporting your long-term HR strategy.
If you want to reduce risk, protect your staff, and create a workplace that thrives under clear and fair rules, contact People & Culture today.
Soon, we will also be launching a dedicated guide section on our website that covers employment law and employee rights in more detail. This will be your go-to resource for staying up to date with every change that matters.
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